Month: February 2011

Rather said and done – choosing to get a loan or not is something hard to tell, but today let us discuss this matter thoroughly. This issue are hard for most of us out there (including me), where wisdom and smart judgment should be taken to ensure better result. Many of us are considering loan when said about house, cars or even marriage when it offer fast solution for urgent money and so on, but please be cautious cause while making such action we must calculate the consequences.

We have to identifies and remember the loan component before we can start calculating the risk management (please ask help from your financial analyst – if you have one). There are 3 components to remember – interest rate, package/type and term.

INTEREST RATE

Interest rate are charge adhere for using the loaner money.

Its’ calculation are base on percentage (%) on that per annul loan.

This interest rates are base on compound (calculation of principal and interest) such as per annual, monthly or daily.

Interest rate have 2 different categories (which many would know):-

Fix rate

Flexible rate

LOAN TYPE / PACKAGE

Without Mortgage (standard loan)
Attain with high interest rate with the addition of a guarantor to secure the loan transaction on behalf of the loaner. This procedures applies with every financial institutions.

With Mortgage
This loan type is assuring if you have any asset to mortgage in return of lower interest rate, and for sure (quick approval). Most general bank applies this concept or loan type in certain cases – such as business loan or high value / risk customer. Please remember this sound nice and good – but, never forget to emphasize the weakness of this loan type on behalf of the loan taker. We might lost the asset if you don’t pa back the loan.

TERM

Do you still want me to explain this.

When talking about loan we must put an effort to follow several principal action as a loaner. Do follow this rules and action strictly in order to attain the full potential of getting a loan. If we don’t meet any of this principals – PLEASE DO NOT TAKE ANY LOAN!!

Principal 1
Loaning for what we really need – remember, NEED not desire. This can be put into something we dear so much,
children education, car or housing loan.

Principal 2
Loan an amount that we are capable to repay. Please put in mind – never calculate our repayment capacities base on
current condition or something that unsure such as the possibilities of having firm financial in the future. Take action for
the worse scenario then if the answer relates with the capabilities of being afford to pay back the debt – please
consider the option.

Principal 3
Avoid loaning for decreasing type asset such as car or furniture (except one that we use for our home). If in any case we cannot pay the loan, the balance after seize will be put into our account. You will never want to involve with this kind of experience. Things that we buy being seize and in addition ya’ have to pay the rest of the loan. It sure suck for me .

Principal 4
PLEASE AVOID BEING A GUARANTOR FOR ANYONE!!!!!!!! Nothing much to say about this one.

Lastly, this is my suggestion. If we have to take a loan in any mean, please make through calculation considerately on our current and future possibilities. Once we take the loan it will be our responsibility to fulfill the repayment task.Till then, Daaaaaaa